The U.S. chip maker pledges to negotiate in good faith with Taiwanese handset makers

Qualcomm Inc. notched a victory in its effort to preserve its patent-licensing business, as it reached a settlement with the Taiwanese government that revokes a previous finding against the chip maker and saves the company nearly $700 million in fines.

The settlement comes as world’s dominant supplier of chips for smartphones seeks to chart a new path following a tumultuous year that involved fending off a takeover effort by rival Broadcom Inc. and abandoning its takeover of NXP Semiconductors NV amid trade tensions between...